The world needs more electricity than ever before, according to a new report. This is because of strong economic growth, extreme heat, and the rise of electric cars and heat pumps. At the same time, renewable energy sources like solar power are quickly increasing and setting new records.
The International Energy Agency (IEA) predicts that global electricity demand will grow by about 4 percent in 2024. This is up from 2.5 percent in 2023.
This increase would be the highest since 2007, excluding the special cases following the global financial crisis and the COVID-19 pandemic. According to the report, the increased electricity use will continue in 2025, and another 4 percent rise is expected.
Renewable sources of electricity set to flourish 2024-2025
Renewable sources of electricity will grow quickly this year and the following. Their share of global electricity supply is expected to increase from 30 to 35 percent in 2024 and 2025, respectively.
For the first time ever, renewables will generate more electricity worldwide in 2025 than coal. Solar power alone will meet about half of the increase in global electricity demand over 2024 and 2025.
Together, solar and wind power will make up three-quarters of the growth in electricity demand during this period, according to IEA.
Solar PV alone is expected to meet roughly half of the growth in global electricity demand over 2024 & 2025
And solar & wind combined are set to meet as much as three-quarters of the growth
Read more on the strong momentum behind renewable electricity
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— International Energy Agency (@IEA) July 21, 2024
Even with the significant rise in renewables, coal power will still be strong this year because of high demand, especially in China and India, according to the report. This means carbon dioxide (CO2) emissions from power plants will level off, with a small rise in 2024 and a drop in 2025. However, there are still many uncertainties.
China’s hydropower made a strong comeback in early 2024 after being low in 2023. If this continues, it could reduce coal power use and slightly lower global power sector emissions in 2024.
World’s major economies experience higher electricity demand in 2024
Some of the world’s major economies are seeing significant jumps in electricity use. In India, demand is expected to rise by 8 percent this year due to strong economic activity and extreme heatwaves.
China will also see significant growth in electricity demand, increasing by more than 6 percent. This growth is driven by active service industries and various industrial sectors, including the production of clean energy technologies.
After a drop in 2023 due to mild weather, electricity demand in the United States is expected to rise by 3 percent this year. The increase is due to steady economic growth, higher demand for cooling, and a growing data center sector.
On the other hand, the European Union will experience a more modest recovery in electricity demand. Growth is forecast at 1.7 percent after two years of decline caused by the energy crisis, according to the report.
